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CYBER SECURITY NO LONGER JUST AN “IT THING”

“(V)irtually every national security and criminal threat the bureau faces is cyber-based or technologically facilitated,” according FBI Director Christopher Wray.  Echoing Wray’s concerns was DHS Secretary Kirstjen Nielsen who said that threats from nation-state adversaries like China, Russia, Iran and North Korea are at the highest levels since the Cold War, largely due to leveraging cyber to conduct espionage and related operations.  The duo made these comments at a Senate Homeland Security and Governmental Affairs Committee hearing just last week.  These statements are certainly attention-getting, not because they’re necessarily new, but because they point to the reality that internet connectivity is globally pervasive and impacts almost all daily functions.  There is a substantial need, and opportunity, for contractors who can provide both traditional and non-traditional cyber security solutions.  To put this in perspective, FBI Director Wray stated at the hearing that China is “the broadest, most complicated, most long-term counterintelligence threat we face.”  That mandates non-traditional thinking, including such insights as to how Chinese culture comes into play in the formulation of cyber strategies.  Internet connectivity isn’t just an IT thing anymore, it’s everywhere, and so, too, must be cyber security.

WHEN CAN A DISCOUNT GET YOU IN TROUBLE?

Everyone likes low prices, right?  Your company probably likes giving them, too, especially at the end of the month.  If you’re a GSA Schedule contract holder, though, discounting to a commercial customer could have a negative impact on your Schedule contract.  Don’t know what we’re talking about?  You need a class in Schedule contract compliance!  Allen Federal conducts multiple classes each year, in addition to consulting services, to ensure that your company can both comply – and sell through – your GSA Schedule contract.  We CAN help!  Give us a shout at info@allenfederal.com to see what we can do for you!

THREE THINGS TO DO NOW THAT IT’S FY’19

October and November can be just as busy for government contractors as August and September, but for different reasons.  If you’re wondering what we mean by that, here are three things that smart contractors are doing now:

1.  Increasing Their KnowledgeWhether it’s through a training class or conference, the calendar is full of these activities and many contract and BD professionals attend more than one. This includes contract compliance and ethics training.  These may not be glamorous, but they are absolutely essential if you want the government to write you checks without your having to write checks back to the government.

2Networking:  In addition to increasing your knowledge base, events are great for expanding your network.  Whether it’s a key new contact with another company, a new federal face, or an opportunity for your own personal advancement, it is vital to remember that government acquisition is a relationship-based business.  There is no better time than right now to build on your existing network.

3.  Showing Their Customers Their FY’19 “Model Year” Lineup:  The start of the fiscal year may be the best time to roll out new solutions and services.  Think of it as your “2019 Federal Model Year”.  Prospective federal customers often have more time to meet in the first and second quarters of the year – and they absolutely do want to know what’s new and innovative.  Make sure you’ve got glossy new things to show them, in addition to the reliable stuff they’ll probably actually buy later.  The bottom line is that this is the time of year you set the foundation for sales success down the road.

E-COMMERCE: STREAMLINER AND STRATAGEM: MAKE SURE YOUR CUSTOMERS PROPERLY USE THEIR NEW TOOL

The impact of electronic commerce on federal commercial item acquisition continues to expand.  Even as GSA works diligently to implement a sound platform in response to Congressional mandates, individual agencies aren’t standing stillE-commerce is undeniably the shiny new toy in this market, just as reverse auctions and LPTA were before it.  That toy, though, may not always meet proper safety standards.  If you’re facing a smitten customer, here are three questions to ask them:  1.  Is the company you’re buying from authorized to sell to you?  Unauthorized re-sellers are a real problem in e-commerce.  Buy from one and kiss your warranty or return capabilities good-bye.  No OEM will come to the rescue if you brought outside of their authorized distribution channels. Unauthorized sellers waste government money.  2.  Are you sure you’re getting what you ordered?  A 2016 CNBC story likened one e-commerce site to, “a chaotic, somewhat lawless, bazaar…”. If you’re not sure who you’re buying from, you’re not sure what you’re getting.  Counterfeit goods = unsecure, compromised systems, even if it’s “only” a printer.  Is putting your agency at risk really worth it?  3.  Are you getting the best price? E-commerce sites may or may not offer the best prices for “quantity of one” items.  The reality varies widely based on what’s being brought.  How often, though, does your customer buy in quantities of one?  Deeper discounts are likely available from established contractors, especially when there is good competition.  These are hallmarks of the government’s acquisition system for a reason.  The bottom line is that, while e-commerce can indeed be a quick and effective way for commercial acquisitions, agencies put themselves, and taxpayer dollars, at risk when they toss out the rulebook.  E-commerce has a place in this market, but only when agencies remember to apply the same standards to those acquisitions as they do to others.

ADDITIONAL MONEY LIKELY COMING FOR TECH MODERNIZATION FUND

The Technology Modernization Fund (TMF) may get additional money after all, once Senate appropriators finish their work on outstanding appropriations bills.  The Fund, a revolving account designed to encourage federal agencies to specifically replace obsolete technology, was originally slated to get $150 million extra for FY’19.  That money, however, was stripped out by Senators who had concerns over transparency and accountability.  Those issues seem to have largely been addressed now and Congressional supporters are optimistic that at least a portion of the $150 million originally slated will be provided.  There are $55 million left in the fund from the original FY’18 appropriations, with much of that money expected to be obligated to specific projects soon.  Contractors are being encouraged to play a role in promoting the Fund to their customers.  While many federal agencies now about the Fund, some still do not.  You cannot assume that your buyer knows about this unique source of funding.  Make sure you know how projects can qualify and where to point your customers to in order to get additional information.  Remember, too, that Fund money must be repaid by agencies that use it.  Helping your customer to devise a business case to obtain Fund money is a good strategy that could pay-off for both customer and contractor.